What is ERC-721?

Have you often heard about NFTs but are still confused by the term ERC-721?

Let's discuss it simply,

ERC-721 is a "technical standard" used to create Non-Fungible Tokens (NFTs) on the blockchain. It is like a recipe or set of rules that must be followed for a token to be considered an NFT.

Why is it important? Because tokens created with the ERC-721 standard have distinct characteristics: each token is unique and cannot be replaced with another. Similar to original artwork, each NFT with the ERC-721 standard has its own identity.

This is very different from regular cryptocurrencies, for example, Bitcoin or Ethereum, which are fungible, meaning one coin can be exchanged for another and have the same value. ERC-721 allows us to have truly special digital assets, ranging from digital images, music, videos, to in-game items!

So, if you have an NFT from popular collections like CryptoPunks or Bored Ape Yacht Club, chances are it was created using this ERC-721 standard.

Now you understand better, right? So what is your favorite NFT?